By Song Jingwoo Kuala Lumpur, 13 October — Malaysia’s Minister of Digital, Gobind Singh Deo, has urged local businesses, especially small and medium enterprises (SMEs), to embrace digital transformation and leverage emerging technologies such as artificial intelligence (AI) to strengthen their operations and market reach.
Speaking at the opening ceremony of the 23rd Deepavali Carnival, Gobind emphasized that the future belongs to those who adopt and integrate AI into their business models. He highlighted that companies utilizing AI technologies will be eligible for a 50% tax rebate, as announced by Prime Minister Datuk Seri Anwar Ibrahim in the upcoming national budget.
“This mindset is crucial because the future is an AI-driven era,” Gobind said. “The government wants to see more SMEs adopting digital and AI technologies — and at the same time, we are committed to ensuring robust cybersecurity infrastructure to support them.”
According to Gobind, SMEs that successfully digitalize can expect to expand their market reach and increase demand for their products. He called on entrepreneurs to rethink their approach to technology and take bold steps in digital adoption, noting that digital capability is now a key driver of competitiveness.
The Minister also shared that the Malaysia Digital Economy Corporation (MDEC) is currently supporting a number of businesses in adopting and implementing digital technologies. He expressed hopes that these initiatives will be expanded next year to reach even more SMEs across the country.
This 50% tax rebate is not just a financial incentive—it’s a powerful signal that the Malaysian government is serious about accelerating AI adoption and digital transformation in the SME sector.
Businesses that invest in AI tools—such as predictive analytics, automation systems, or smart marketing platforms—could significantly improve their efficiency, customer insights, and profitability.